ted, sorry if I sounded aggressive, I just read an opionion (Chic's) that I agreed with and your answers sounded like, "Well, everyone agrees that Cisco is a great company and always has been a great company, therefore it must be a great company."
John,
I just didn't want us to forget that we are friends, not enemies. And I may joke around a lot but I am very serious about my work.....with CSCO, I have looked at it for a long time, and watch their progress. Their networking business..switches and routers for the net...is strong and growing very well. In addition they are starting to pick up companies involved in fiberoptics, another fast growing business. They have bought approximately 40 small companies in the last year and they are masters at melding them into the company quickly and having them be accretive to earnings in two or three quarters....its unbelievable to watch.
Nonetheless they are overvalued and in August, insiders sold off roughly $140 million in stock. Now that that is over, I am waiting to jump in when CSCO starts to move up. I can understand your concerns but CSCO has a track record that is very hard to beat and I want to make it a part of my core portfolio.
I agree, but don't think its a good investment. As for the difference in net profit margin %'s, yours were probably based on 12 months of data and/or include one-time factors like investment gains. Here's the AMD numbers, straight from the press release: amd.com
YOY revenue growth - +97% (1170M vs. 595M)
YOY net income - +128% ($207M vs. $80M, adj for more shares)
Profit margin = 17.7% (after tax) (207M/1170M)
My figures are year to date....I forgot we are two quarters into the year. I still think CSCO's numbers would beat AMD though....but truly its not that big a deal. Mainly, I was reacting to Chic's trashing of the company...I thought it was a little overdone.
ted |
